The above table has the private demand for loanable funds and the private supply of loanable funds schedules
If the government budget surplus is $200 billion, and there is no Ricardo-Barro effect, the equilibrium real interest rate is ________ and the equilibrium quantity of loanable funds is ________.
A) 8 percent; $700 billion
B) 4 percent; $700 billion
C) 4 percent; $500 billion
D) 8 percent, $500 billion
E) 6 percent; $600 billion
B
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Suppose that the current equilibrium price of gasoline is $3.50 per gallon and that the government passes a law that requires the price to be no more than $3 per gallon. What will be the effects?
What will be an ideal response?
Stephanie has just placed an order for the latest video after she received a personalized e-mail. The e-mail is an example of
A) mass marketing. B) direct marketing. C) indirect marketing. D) interactive marketing.
If the demand faced by a firm is elastic, selling one less unit of output will:
a. increase revenue. b. decrease revenue. c. keep revenues constant. d. decrease price.
A common misconception about supply is that
a. supply depends on many other variables. b. price is a major determinant of quantity. c. it is a fixed amount. d. quantity cannot be determined in advance. e. All of the above are correct.